Excise Invoice Rejection

Dear Sir,

you have to reverse the equal to cenvat credit that you have taken in the time of making GRR (input duty credit in Part-2) in respect of rejected goods. You should to show the reverse entry in ER-1 retrun in the coloumn of input & capital goods removed as such. I suppose you have a SAP system, Then following entry to generated .

1. At the time of Capture of cenvat on invoice

Basic Excise Duty rec on Inputs Dr.

Ed. Cess rec on Inputs               Dr.

                                       Modvat Clearing Cr.

2.in case of rejection it will be

Modvat Clearing A/c   Dr..

                                  Excise duty Clearing ( Liability a/c)  Dr.

                                  Cess duty Clearing ( Liability a/c)  Dr.

Regards,